Microsoft Corporation (MSFT), headquartered in Redmond, Washington, provides productivity software, services, and solutions worldwide. Valued at $3.47 trillion by market cap, the company’s products include operating systems for computing devices, servers, phones, server applications for distributed computing environments, productivity applications, business solution application, video games, etc. MSFT also offers cloud-based solutions. The tech giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, July 23.

Ahead of the event, analysts expect MSFT to report a profit of $2.90 per share on a diluted basis, up 7.8% from $2.69 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, MSFT announced new Surface PCs and introduced fresh cybersecurity services. It also said it would sell its Microsoft 365 Copilot AI add-on to enterprises starting November 1.

For fiscal 2024, analysts expect MSFT to report EPS of $11.77, up 20% from $9.81 in fiscal 2023.

MSFT stock has outperformed the S&P 500’s ($SPX) 16.8% gains on a YTD basis, with shares up 24.1% during this period. Similarly, it outshined the S&P 500 Technology Sector SPDR’s (XLK) 22.5% gains over the same time frame.

On Apr. 26, MSFT shares closed up more than 2% after reporting its Q3 results. Its revenue was $61.86 billion, up 17% year over year, beating the consensus estimates of $60.87 billion. Its EPS was $2.94, surpassing the Wall Street forecasts of $2.81. The company’s strong Q3 performance was driven by the growth in its Intelligence Cloud, Productivity and Business Processes, and More Personal Computing segments. Since reporting its Q3 results on Apr. 25, MSFT shares have been on an uptrend.

MSFT’s overall performance can be attributed to its robust Q3 results and solid guidance for Q4. The company expects revenue between $63.5 billion and $64.5 billion in the current quarter and forecasts double-digit revenue growth in fiscal 2025. Moreover, it remains well-placed to capitalize on the demand for AI, given its investment in OpenAI. It has already integrated AI into its various offerings. MSFT said that near-term AI demand is slightly higher than capacity, indicating scope for more growth ahead.

Analysts’ consensus opinion on MSFT stock is bullish, with a “Strong Buy” rating overall. Out of 38 analysts covering the stock, 34 advise a “Strong Buy” rating, three have a “Moderate Buy” rating, and one recommends a “Hold.” The average analyst price target for MSFT is $494, indicating a 6% potential upside from the current levels.

• CoStar's Q2 2024 Earnings: What to Expect
• What You Need to Know Ahead of Alphabet's Earnings Release
• What You Need to Know Ahead of Edwards Lifesciences' Earnings Release
• What to Expect From Align Technology's Next Quarterly Earnings Report